gio mount does not mount Time Capsule SMB1 share, reports errors in a misleading way

gio mount does not work properly with a Samba share, reports errors in a misleading way

Situation:
- the share is created by Apple’s Time Capsule, that shares attached USB disks via “device password” option (setting to “accounts with passwords” option also applies to this report). The protocol version in SMB1 (disabled by default)
- the client system runs on Ubuntu 20.04, with gio version 2.64.6,
- the client system has /etc/samba/smb.conf which allows to connect via smbclient, however gio mount quits with “” error. The authentication-related contents of /etc/samba/smb.conf are (referred to as Config A):

******** /etc/samba/smb.conf (fragment) - Config A **********
    client min protocol = NT1
    client max protocol = NT1
    client use spnego = no
    client ntlmv2 auth = no
    ntlm auth = yes

- changing configuration of has /etc/samba/smb.conf to (Config B):

******** /etc/samba/smb.conf (fragment) - Config A **********
    workgroup = WORKGROUP
    client min protocol = NT1
    client max protocol = NT1
    #client use spnego = no
    #client ntlmv2 auth = no
    #ntlm auth = yes

results in gio mount <share> asking for a password, but when a correct password is entered, the password request is repeated (endlessly). As a contrast smbclient ceases to connect with the error message:

    Server does not support EXTENDED_SECURITY but 'client use spnego = yes' and 'client ntlmv2 auth = yes' is set
    session setup failed: NT_STATUS_ACCESS_DENIED

runnig gsvd -d option gives the following logs:

********** Config A ***********

The error in the terminal invoking the gio mount command is:
gio: smb://<IP - censored>/data/: Failed to mount Windows share: No such file or directory

smb: g_vfs_backend_smb_init: default workgroup = 'NULL'
smb: Added new job source 0x5645821c0080 (GVfsBackendSmb)
smb: Queued new job 0x5645821c1180 (GVfsJobMount)
smb: do_mount - URI = smb://<IP - censored>/data
smb: do_mount - try #0
smb: auth_callback - kerberos pass
smb: auth_callback - out: last_user = '<IP - username>', last_domain = 'WORKGROUP'
smb: do_mount - [smb://<IP - censored>/data; 0] res = -1, cancelled = 0, errno = [1] 'Operation not permitted'
smb: do_mount - enabling NTLMSSP fallback
smb: do_mount - try #1
smb: auth_callback - ccache pass
smb: auth_callback - out: last_user = '<IP - username>', last_domain = 'WORKGROUP'
smb: do_mount - [smb://<IP - censored>/data; 1] res = -1, cancelled = 0, errno = [2] 'No such file or directory'
smb: do_mount - (errno != EPERM && errno != EACCES), cancelled = 0, breaking
smb: send_reply(0x5645821c1180), failed=1 (Failed to mount Windows share: No such file or directory)

********** Config B ***********

smb: g_vfs_backend_smb_init: default workgroup = 'NULL'
smb: Added new job source 0x559836d1d080 (GVfsBackendSmb)
smb: Queued new job 0x559836d1e990 (GVfsJobMount)
smb: do_mount - URI = smb://<USER - censored>/data
smb: do_mount - try #0
smb: auth_callback - kerberos pass
smb: auth_callback - out: last_user = '<USER - censored>', last_domain = 'WORKGROUP'
smb: do_mount - [smb://<USER - censored>/data; 0] res = -1, cancelled = 0, errno = [1] 'Operation not permitted'
smb: do_mount - enabling NTLMSSP fallback
smb: do_mount - try #1
smb: auth_callback - ccache pass
smb: auth_callback - out: last_user = '<USER - censored>', last_domain = 'WORKGROUP'
smb: do_mount - [smb://<USER - censored>/data; 1] res = -1, cancelled = 0, errno = [1] 'Operation not permitted'
smb: do_mount - try #2
smb: auth_callback - normal pass
smb: auth_callback - asking for password...
smb: auth_callback - out: last_user = '<USER - censored>', last_domain = 'WORKGROUP'
smb: do_mount - [smb://<USER - censored>/data; 2] res = -1, cancelled = 0, errno = [1] 'Operation not permitted'
smb: do_mount - try #3
smb: auth_callback - normal pass
smb: auth_callback - asking for password...

*********** system *************
Description: Ubuntu 20.04.2 LTS
Release: 20.04

samba:
  Installed: 2:4.11.6+dfsg-0ubuntu1.6
  Candidate: 2:4.11.6+dfsg-0ubuntu1.6
  Version table:
 *** 2:4.11.6+dfsg-0ubuntu1.6 500
        500 http://pl.archive.ubuntu.com/ubuntu focal-updates/main amd64 Packages
        500 http://security.ubuntu.com/ubuntu focal-security/main amd64 Packages
        100 /var/lib/dpkg/status
     2:4.11.6+dfsg-0ubuntu1 500
        500 http://pl.archive.ubuntu.com/ubuntu focal/main amd64 Packages